By Stephen Kirkland & Lu Wang - Jun 10, 2013 11:19 AM ET
Commodities slipped and currencies from Australia to South Africa slid after Chinese data trailed estimates, while Japan’s Topix surged the most in more than two years. U.S. stocks advanced and Treasuries fell as Standard & Poor’s raised the government’s credit outlook to stable.
The S&P GSCI gauge of 24 raw materials dropped 0.7 percent as corn and wheat tumbled more than 2 percent and industrial metals retreated. The Aussie, rand and India’s rupee lost at least 0.5 percent versus the dollar. Japan’s Topix surged 5.2 percent while the yen slid 1.5 percent to 99.01 per dollar. The S&P 500 added 0.2 percent to 1,646.86 while 10-year Treasury yields increased three basis points to 2.20 percent, approaching a 14-month high.
China's industrial production rose a less-than-forecast 9.2 percent last month, while export gains were at a 10-month low and imports dropped, data over the weekend showed. Japan’s economy expanded an annualized 4.1 percent in the first quarter, compared with a preliminary calculation of 3.5 percent, the Cabinet Office said today, after a report on June 7 showed U.S. employers took on more workers than forecast last month.
“There is a change in the composition of global growth, with the risk of China overslowing and the U.S. possibly growing too fast,” said Kit Juckes, global strategist at Societe Generale SA in London. “For now, softer commodity prices are a boost for emerging markets, helping offset a slowdown in global trade.” U.S. Outlook

S&P cited receding fiscal risks as it lifted the outlook on the AA+ American credit rating from negative. The world’s largest credit rater cut the U.S. ranking from AAA in August 2011, contributing to a global stock-market rout and sending yields on Treasury bonds to record lows.
“It was a quite shocking event for the markets when the U.S. was downgraded to negative, so to have that rating repaired is meaningful,” Lawrence Creatura, a Rochester, New York-based fund manager at Federated Investors Inc., which oversees $377 billion, said by phone. “Economic data has been improving gradually and S&P’s upgrade is a recognition of that.”
Gauges of telephone, commodity and technology shares increased at least 0.4 percent to lead gains in the 10 main industry groups in the S&P 500, while industrial and energy companies fell by the most. McDonald’s Corp., Intel Corp., AT&T Inc. and UnitedHealth Group Inc. rose at least 1.5 percent to lead gains in the Dow Jones Industrial Average.
Commodities fell for the first time in six days. China is the biggest buyer of industrial metals and energy. Brent declined 0.5 percent and West Texas Intermediate oil retreated 0.3 percent to $95.75 a barrel. Corn dropped 2.6 percent as dry weather may help planting in the U.S. European Markets

The Stoxx 600 added 0.1 percent after sinking 1.8 percent last week, its third consecutive weekly decline. Severn Trent Plc (SVT) sank 5.6 percent today, the biggest drop in almost a year, as Borealis Infrastructure Management Inc. and its partners in the LongRiver group abandon a 5.3 billion-pound ($8.2 billion) takeover offer after the U.K. water utility declined to negotiate.
The MSCI Emerging Markets Index fell 0.8 percent, declining for a fourth day and trading at a six-month low. The Hang Seng China Enterprises Index (HSCEI) of mainland companies listed in Hong Kong dropped for a ninth day, the longest losing streak in more than a year, slipping 0.6 percent. Warning Protestors

The Borsa Istanbul Stock Exchange National 100 Index sank 2.5 percent and the lira slid 1.3 percent against the dollar. Turkish Prime Minister Recep Tayyip Erdogan warned demonstrators if they remain in the streets, “we’ll have to answer them in the language they understand,” speaking to supporters over the weekend as anti-government protesters rallied in Istanbul’s Taksim Square. The benchmark equity gauge has lost 11 percent this month after demonstrations erupted May 31.
The dollar strengthened against 14 of its 16 major peers, while trading little changed $1.3202 per euro. The yen depreciated against all 16 peers but the rand.
Currencies of commodity-producing nations slid, with the rand sinking 2.2 percent to 10.1822 per dollar and the Aussie losing 0.5 percent to 94.50 U.S. cents and touching the weakest level since Oct. 4, 2011.
The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10 most-used currencies excluding the yen, dropped 0.6 percent to 116.25, the lowest level since Sept. 14. India’s rupee slumped 1.7 percent against the dollar, the Malaysian ringgit sank 1.6 percent and South Korea’s won weakened 1.3 percent.
The cost of insuring corporate bonds with credit-default swaps increased, with the Markit iTraxx Europe Index of contracts linked to 125 investment-grade companies rising 3 basis points to 107.1. The gauge dropped 8.9 basis points on June 7, the biggest daily decline since Jan. 2.
To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Lu Wang in New York at lwang8@bloomberg.net
To contact the editor responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net